Following the Senior Housing Market Construction Cycle Trends
May 2, 2023
The real estate market is shifting day by day, both in the residential and commercial sectors. Senior housing market data shows that construction has slowed to 5% of Primary Market inventory. This is down from the 2019 peak of 7.3%.
What’s causing this slowdown in development? A likely cause is the current length of construction cycles. From initial conception to the project’s close, senior housing project construction is taking 62.5% longer than in years past.
What Is Affecting Senior Housing Market Construction Trends?
New construction projects are taking longer across the board and some factors affect both residential and commercial. Challenges in obtaining certain building materials leave many projects at a standstill. Even when supplies are available, delivery delays still keep projects from progressing. In the senior housing market, the number of units in a facility directly affects the construction cycle.
Senior housing market data shows that Majority Independent Living projects take slightly longer than Majority Assisted Living projects. In addition, Continuing Care Retirement Communities (CCRCs) take longer than Senior Housing or Nursing Care projects. CCRCs are taking as long as 2.5 years from concept to completion.
Construction cycles also vary based on location. New York, Alabama, and Washington have had longer construction cycles compared to the rest of the country, and states in the Pacific and Mid-Atlantic regions of the United States have had longer construction cycles compared to the South and Midwest regions.
Senior Housing Market Data: Key Takeaways
Each stage of the construction process is taking longer due to various outside causes. Rising construction costs, regulatory concerns and red tape, and lack of labor all play a role in the lengthening construction cycles.
When properties are taking longer to open, investors and developers must stay up-to-date on each project’s emerging local market conditions from demographics, migration, new and planned competition, pricing adjustments, and consumer insights.
Senior housing construction will continue to face challenges in the coming months and years. Moving into 2023 and beyond, finding the right property to develop as well as capable contractors and building supplies will add more time to each stage of the construction cycle.
Download Our Whitepaper on Senior Housing Market Construction Cycle Trends
Be prepared for the challenges that you may face with upcoming senior housing construction. Take the data that we’ve collected and use it to take the steps necessary to ensure a successful property development project.
To get the information you need, download An Analysis of Recent Senior Housing Market Construction Cycle Trends, our comprehensive whitepaper on senior housing construction cycle trends. You’ll learn:
- How project scale, unit count, property type, and sector affect the time it takes to complete a project.
- How construction cycles differ based on the state, region, and metro area of the United States.
- Key takeaways from current senior housing market data.
Click below to download our whitepaper, An Analysis of Recent Senior Housing Market Construction Cycle Trends.
NIC MAP Vision gives operators, lenders, investors, developers, and owners unparalleled market data for the seniors housing and care sector.